What is reinsurance?
Reinsurance is a form of insurance which is purchased by an insurance company. In this form of insurance, the insurance company buying a reinsurance policy would be allowed to remain solvent even after they have faced major claims for several events including but not limited to disasters and calamities. While the key aim of reinsurance is risk management, it can also be used for tax mitigation purposes too. The company which purchases the reinsurance policy would have to pay a premium to the insurer who would pay a share of the claims as per chosen terms of agreement. The insurer company might either specialize exclusively in reinsurance policies or could be a general insurance company as well.
What does Munich/ Lloyd’s reinsurance offer?
Munich/ Lloyd’s reinsurance has their clients spread worldwide. They offer reinsurance policies and at the same time also offer advice on different forms of insurance business as well. The ERGO group is their primary insurance unit and they write all possible types of life and health insurance. They deal in different kinds of property and casualty insurance as well.
The Warranty Risk of Solar
Project developers, banks, governments and regulators, should correctly address the "Warranty Risk of Solar", when designing their contracts, tenders or regulatory framework.
The long warranty period of PV modules (25-30 years!) poses a unique risk to the PV industry. The warranty risk of solar has two perspectives.
Firstly, the PV module supplier may suffer warranty claims, which exceed their warranty reserves. Secondly, PV project owners may be left alone with useless warranties of an insolvent module supplier.
To lower the warranty risk of solar means to increase bankability and sustainability for the whole PV industry.
Wherever there is sun, there is need for protection
The dynamic and fast-growing pace of the photovoltaic industry has brought with it many opportunities but also many challenges. Rising material costs, high price pressure, changing legal conditions and the introduction of many new players on the field have all led to challenges for suppliers and investors alike.
Over the last 25 years, approximately every fourth manufacturer of solar panels went bankrupt or was taken over – and with them, went the warranties. This market volatility led to investors and park owners bearing the full risk of the panel performance and endangered the overall long-term profitability of their solar investment.
For manufacturers to remain competitive for their clients in this landscape, reliability is essential for the growth of their business on a global scale. Delivering premium quality and state-of-the-art technology that safeguards their customers long into the future is essential.